Nifty Bank index failed to sustain the break above 56,000 on Monday and has come off 56,156. The index is trading flat now around 55,725. The advances/declines ratio is at 9:3. This is positive. If the trend continues, there are good chances for the Nifty Bank index to rise back during the day. We will have to wait and see.
Nifty Bank outlook
Nifty Bank index has good intraday support in the 55,600-55,500 region. If it manages to sustain above this support zone, the bias will remain positive. It can then take the index up to 56,000-56,200 in the coming sessions.
This bullish view will get negated only if the index declines below 55,500. If that happens, the Nifty Bank index can fall to 55,400-55,350.
Nifty Bank Futures
The Nifty Bank August Futures (55,873) is trading flat. The contract has support in the 55,700-55,600 region. Intermediate resistance is around 56,000. A break above it can take the contract up to 56,300-56,350.
Failure to breach the resistance at 56,000 can keep the Nifty Bank Futures contract in a tight range of 55,700-56,000.
The outlook will turn negative if the contract declines below 55,600. Such a break can drag the contract down to 55,300-55,250.
Trade Strategy
Traders can go long on a break above 56,000. Keep the stop-loss at 55,940. Trail the stop-loss up to 56,050 as soon as the contract goes up to 55,090. Move the stop-loss further up to 56,110 and 56,180 when the contract touches 56,160 and 56,210 respectively. Exit the long positions at 56,240.
Supports: 55,700, 55,600
Resistances: 56,000, 56,350
Published on August 19, 2025
